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HomeMy WebLinkAboutAgenda Statement 1987/04/07 Item 4 COUNCIL AGENDA STATEMENT Item 4 Meeting Date 4/7/87 ITEM TITLE: Resolution/2,fG 5pproving submission by San Diego County Housing A�ltori ty of Development Program for Family Low Rent Public Housing and approving agreement amending the Cooperation Agreement between the San Diego County Housing Authority and the City of Chula Vista SUBMITTED BY: Community Development Director REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) On April 11 , 1978, the voters of Chula Vista approved an Article 34 Referendum for 400 units of publicly-owned low-income housing on scattered sites. Subsequently, the Council entered into a Cooperation Agreement and a Memorandum of Understanding (MOU) with the San Diego County Housing Authority to provide 100 of those units under the U.S. Department of Housing and Urban Development' s (HUD) Low-rent Public Housing Program. To date, the San Diego County Housing Authority has developed 24 family and 59 senior public housing units in the City. The County Housing Authority has informed us of the availability of HUD Low-rent Public Housing Program funds for projects with units sizes of three bedrooms or more. They wish to submit to HUD an application for construction of a maximum of 40, three bedroom units on scattered sites in the City of Chula Vista. RECOMMENDATION: That the Council : 1 . Approving the submission to HUD of an application for 40, three bedroom low rent, family public housing units by the San Diego County Housing Authority, and 2. Approving agreement amending the cooperation agreement for public housing. BOARDS/COMMISSIONS RECOMMENDATION: Due to the short time period for applying for public housing funds, staff was unable to seek input from the Human Relations Commission. However, the Affordable Housing Subcommittee of the Human Relations Commission has, in the past, supported the pursuit of public housing in Chula Vista. DISCUSSION: Background The HUD Low Rent Public Housing Program provides for the development of rental housing which is owned and operated by Housing Authorities and occupied by low income households with incomes at or below 50% of the median income (maximum income of $17,150 for a family of four). Tenants pay 30%o of their monthly income for rent and utility costs. Projects are self-sufficient, operating with rents collected from tenant. This is possible due to the very low project debt service accomplished by financing the project development with very favorable federal financing. Page 2, Item 4 Meeting Date 4/7/87 Availability of Funds On March 9, 1987, HUD announced the availability of funds for Low Income Public Housing. The deadline to apply for these funds is April 9. Given the short response period, staff has been unable to locate potential public housing sites for the Council to consider. However, in an effort to compete for HUD funds, staff recommends that Council approve the submission of an application for funds by the County Housing Authority for a maximum of 40, three bedroom units. Staff recommends that each site contain 17-20 units. If a project has less than 17 units, a project manager would be impractical , and both the County Housing Authority and the City insist that public housing projects have a resident manager. The maximum number of units allowed in our MOU is 25. Because three bedroom units will house more people per unit, staff recommends a maximum of 20 units per site. Staff will work to locate appropriate parcels and will return to the Council with a list of sites for their consideration. If no sites acceptable to the Council are identified, the project will not go forward. Need Lower-income large families are typically one of the most difficult populations to house. Few developers build three bedroom apartments, opting instead for smaller units. Thus, it is difficult for any large family to locate rental housing, and is particularly problematic for large families with limited incomes. The City' s 1985-88 HAP identifies, as one of our three year housing goals, the provision of housing for 38 large families. To date, the City has not provided any units for large families during this period. While overall , the City has adequately performed in meeting our three-year Fair Share Housing goals, we have disproportionately served seniors. The submittal of an application for public housing funds for large family projects would assist the City in pursuing our HUD Fair Share Housing goals. Development Parameters If the Council votes to approve the submittal to HUD of a development proposal by the County for family, low-rent public housing, any potential project would be required to meet our development and design guidelines as outlined in the amended Memorandum of Understanding between the City of Chula Vista and the County Housing Authority. The most important of these guidelines include the following: 1 . All development should conform to the present zoning ordinance and design manual of the City, and meet and or exceed the currently adopted building and safety codes; 2. No public housing site will be located within 300 feet of any other public housing site; 3. Ten percent of all units constructed shall be for the handicapped; Page 3, Item 4 Meeting Date 4/7/87 4. For family public housing units, the number of units permitted per site will be consistent with the zoning requirements of Title 19 of the City' s Municipal Code and will not exceed 25 units on any one site; 5. The developer will be required to adhere to the same procedures required of all other developers; and 6. The City Manager or his/her designee will be kept informed as to all agreements between the Housing Authority and HUD concerning public housing units in the City of Chula Vista. In addition, the Housing Authority will request input from this representative to assist in the preparation of the bid documents including site and design criteria and the review of proposals. Proposed Further City Controls Over Public Housing Development After experiencing the problems associated with Town Centre Manor, the Council required stronger City control over the implementation of these design standards and proposed changes to the MOU to accomplish this. Council passed a resolution on August 14, 1984, stating that prior to an application for public housing funds, the MOU between the County Housing Authority and the City must be amended to strengthen the City' s control over the development and placement of public housing in the City. After review of the MOU and the Cooperation Agreement, staff recommends that the Cooperation Agreement be amended rather than MOU because the Cooperation Agreement is the dominant document and takes precedence over the MOU. The attached draft amendment to the Cooperation Agreement grants the following further controls to the City: 1 . That the City Council of the City of Chula Vista be granted subsequent formal approval authority of sites selected for development of the subject units. 2. That the City Council of the City of Chula Vista be granted subsequent formal approval authority of project design of the subject units. 3. That the City Community Development Director and Director of Building and Housing be granted approval authority of the bidding standards for construction of the subject units. (This means that standards unacceptable to the City would not be used. ) 4. That the City Community Development Director and Director of Building and Housing be granted input into the formal decision as to the responsibility of construction bids received by the County Housing Authority. (This means that, although the County cannot legally give up ultimate discretion over the selection of successful bidders, they will give due consideration to any concerns the City might have. ) 5. That conditions 1 through 4 above be incorporated through amendment as attached into the Cooperation Agreement for development of low-rent public housing existing between the City and the Housing Authority. As a result of these changes, the City should be assured of quality projects built in a timely and efficient manner. Page 4, Item 4 Meeting Date 4/7/87 Increase in the Number of Units The current Cooperation Agreement authorizes 100 units of public housing, 83 of which have previously been developed. In order to seek approval for an additional 40 units, the number of units in the Cooperation Agreement must be increased from the current total of 100 to 123. Potential Agency Assistance Council should be aware that if HUD gives an award to the County Housing Authority for units in Chula Vista, Redevelopment Agency funds will most likely be requested to enhance the project to make it of a quality acceptable to the City. Such Agency participation might be in the form of land acquisition assistance or a fund for architectural upgrades. FISCAL IMPACT: No funds are requested at this time. If HUD awards funds, the Redevelopment Agency may wish to consider giving assistance to a particular project from the low and moderate income housing fund. That fund has a current balance of approximately $ 1.3 million. Public housing projects do not pay property tax. However, under the terms of the Cooperation Agreement, the County is obligated to pay PILOT, or payment in lieu of taxes, to the City. That is an annual payment of 10% of the project' s rental income after utilities. WPC 2804H the City Council of Chula Vist , California Dated 7/4"